A stock has a beta of 09 and an expected return of 14 the


A stock has a beta of 0.9 and an expected return of 14%. The risk free rate is 2% and the expected return on the market portfolio is 8%.

How much better (or worse) is the expected return on the stock compared to what it should be according to the CAPM? Enter answer in percents, accurate to two decimal places.

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Financial Management: A stock has a beta of 09 and an expected return of 14 the
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